(Ecofin Agency) - Wentworth Resources and its JV partner Maurel et Prom, have reported the commencement of gas deliveries to the new transnational pipeline in Dar es Salaam.
Towards achieving a way to generate power in Dar es Salam, the production facilities at Madimba, and the Kinyerezi Gas Receiving Facility are now operational and the gas produced from the Mnazi Bay field is presently being used at the Ubungo-II, Symbion and the Kinyerezi power plants.
The capacity going into the pipeline is at 33 Mmscf/d from three wells on a limited flow basis, and once all the generators at these three power plants are fully operational the capacity is anticipated to increase to about 80 Mmscf/d in Q4 of 2015.
Three wells of the five gas wells presently existing at the Mnazi Bay have been brought on-stream, achieving good results as expected. However, while the fourth well is scheduled to be tied in by November 2015, the fifth is to be tied in and readied for production into the new pipeline in Q1 of 2016.
Gas sales with the capacity of 1,032 Mmscf (an average of 33 Mmscf/d) were delivered to the new pipeline in October 2015 and a gross payment of $3.8 million to the Mnazi Bay Joint Venture Partners has been received from TPDC, the buyer of the gas. Under the Gas Supply Agreement (GSA) signed in September, the sale price was set at $3.00 per million BTU (British thermal unit), around $3.07/Mcf, rising in line with the US CPI industrial index starting in 2016, Petroleum Africa reports.